The Corporate Travel Management Ltd (ASX: CTD) share price was amongst the best performers on the market on Wednesday.
The corporate travel specialist’s shares finished the day 3.5% higher at $29.84.
Why did Corporate Travel Management’s shares surge higher?
This morning Corporate Travel Management released a presentation ahead of the Morgans conference.
Within the presentation the company provided a trading update and a reminder of its guidance for FY 2019.
Previously, management had provided guidance for underlying EBITDA in the range of $144 million and $150 million, representing growth of between 15% and 20% on FY 2018. This guidance assumed that global client activity would be relatively flat for the year.
Whereas this morning management advised that during the first quarter of FY 2019 its client wins were at record levels. In addition to this, it stated that “Key FX and client activity assumptions are proving favourable to CTD guidance.”
Management intends to provide an update on its guidance at its annual general meeting on October 31. I suspect that if trading conditions remain favourable in the run up to the meeting, this guidance will be revised upwards.
Should you invest?
With Corporate Travel Management’s shares down over 11% from their 52-week high, I think now could be an opportune time to consider an investment.
As I have mentioned previously, I’m bullish on the company due to its strong long-term growth potential.
You only need to look at its share of the markets it operates in to see how much of a runway for growth it has. As of the end of FY 2018, management estimates that it has only has a 15% share of the ANZ market, a 2% share of the Asia market, and under 1% of both the European and US markets.
Finally, here's another growth share with an extremely long runway for growth.
Discover why this legendary Australian stock-picker just issued a “Double Down” buy alert to his exclusive group of insiders… and why he’s convinced this might be the single most attractive entry point for years to come.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia owns shares of Helloworld Limited. The Motley Fool Australia has recommended Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.